BDC commits $500M to help struggling energy firms
Crown corporation will prop up businesses in downturn and offer 'advisory solutions'
Small and medium-sized businesses impacted by the crash in oil prices will have access to a share of $500 million in financing announced today by the Business Development Bank of Canada.
"We want to ensure that the many well-run companies that enjoyed success before the downturn continue to receive the financing and advice they require," Michael Denham, president and CEO of BDC, said in a release.
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BDC is a federal crown corporation with a mandate to foster Canadian businesses, particularly small and medium-sized enterprises.
Denham said BDC will also provide "advisory solutions" to companies as they adjust their operations in the wake of the economic downturn.
'Critical time'
Senior vice president of BDC Michael Selci says it's a critical time for many companies.
"There are some companies that won't make it and some will emerge stronger," he said.
"So it's very, very important, we believe, that entrepreneurs sit down look at their business plans, their financials and their projections and make sure that they are ready and able to survive."
Chamber applauds increase
The Calgary Chamber of Commerce applauds the increase and urges energy companies to seriously consider innovating and exploring new markets.
Adam Legge, the president of the chamber, says the prolonged downturn proves that it's time to stop talking about diversification and for companies to start doing it.
"The reality is that we have to put some effort and muscle into doing it, so we need to be very purposeful in how we're looking into new markets for our companies," he said.